avatar Holland Casino N.V. Retail Trade
  • Location: NOORD-HOLLAND 
  • Founded: 2017-04-30
  • Website:


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    ANNUAL REPORT 2018 CONTENTS 80 INTRODUCTION 46 2018 HIGHLIGHTS / VENLO 2 3 Message from the CEO 47 Our people 4 2018 in figures 52 2018 HIGHLIGHTS / GRONINGEN 5 Key figures 54 Our society 57 Holland Casino management team 58 In control statement ABOUT HOLLAND CASINO 7 Company profile FINANCIAL STATEMENTS 8 Mission & strategy GOVERNANCE 9 Strategic pillars 60 Composition Supervisory Board 10 Value creation model 62 Foreword by the chairman of the REPORT OF THE Supervisory Board EXECUTIVE BOARD 64 Supervisory Board report REPORT OF THE EXECUTIVE BOARD 66 Corporate governance 12 Foreword Executive Board 70 Risk management 6 15 Financial developments 18 2018 HIGHLIGHTS / EXPERIENCE ZONE 20 Our environment FINANCIAL STATEMENTS 23 Stakeholder overview 80 Financial statements 2018 26 SWOT analysis 133 Other information ABOUT HOLLAND 27 Materiality matrix CASINO 28 Relationship material aspects & strategic pillars 29 2018 HIGHLIGHTS / AMSTERDAM-WEST ADDITIONAL INFORMATION 31 Operational developments 142 Locations GOVERNANCE 36 2018 HIGHLIGHTS / 143 Five-year summary ELFSTEDENZWEMTOCHT 38 Developments at casinos 39 Outlook 144 145 146 About this report List of abbreviations Colophon 59 40 Our guests 11 2

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    MESSAGE FROM THE CEO BUILDING ON A STRONG FOUNDATION We are pleased to present Holland Casino’s annual midst of these dynamic developments is an enormous tribute report for 2018. It was a special year for a special to our employees. Company. It was a successful year, too, as after a number of turbulent years we found the calm and Holland Casino takes its responsibility to its guests and the focus again to devote our full attention to working employees very seriously and continues to work – together on our strategy HC 2020. with its partners – on a safe and pleasant gaming environ- ment, fulfilling our social task as might be expected. We invested in new casinos, in our guest experience and in the development of our staff. We managed to stabilise our market Holland Casino operates at the heart of society and welcomes share in the competitive leisure and entertainment market and visitors from all walks of life. We gladly contribute to a healthy ‘With the new made major progress in the renewal of our range of games. We can see the effects of these efforts in our financial results, society through a range of partnerships and contributions to good causes. The most prominent of these in 2018 was our locations, our which were both positive and robust with higher gross revenues than in 2017. The fact that the result before corporate support as founding father for Maarten van der Weijden’s Elfstedenzwemtocht, which will be continued in 2019, and casino family is income tax did not increase in line with gross revenues was primarily due to a later insurance payment related to our employees’ sponsorship campaigns in support of the Dutch Cancer Society (KWF). complete again.’ ‘Groningen’ and the increase in the gaming tax rate. The opportunities and challenges that lie ahead for Holland Following the opening of our new casino in Amsterdam Casino are numerous. We continue to keep a very close eye West-Sloterdijk and the opening of the temporary pop-up on our environment, where the stakes are high and political casino in Groningen, our family of 14 casinos is once again decisions on privatisation remain uncertain for the time being. complete. And with the drastic renovation of Holland Casino We will continue to focus fully on the realisation of our Valkenburg, and the ground-breaking ceremony for our new strategic objectives. This strategy will help us build a strong casino in Venlo, we continue to develop the most modern and future-proof company, with compelling concepts for new and sustainable casinos across the Netherlands. and existing guests and promising propositions. We also want to remain an attractive employer for our talented colleagues. We also had a dynamic year, as we continued to build on our online platform and on the multidisciplinary teams that are In 2019, we will continue to build on the strong foundations working on our strategic priorities. So rather than waiting for we laid in 2018 with conviction. We are looking to the future things to happen, we have taken matters into our own hands of Holland Casino with great confidence. to ensure that we are prepared for new gaming legislation. The fact that we did not lose sight of our daily guests in the Erwin van Lambaart – CEO Holland Casino 3

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    ANNUAL REPORT 2018 2018 IN FIGURES COMPARED TO 2017 € 656.5 MLN 29 € 114 Total revenue NET Promotor Score Average spending per visit 2.7 30 4.6 € 82.7 MLN € 265.8 MLN € 340.0 MLN Result before corporate income tax Revenue table games Revenue slot machines 15.6 * 3.9 2.3 1.1 MLN 5.7 MLN 5.2 x Guests Visits Visit frequency 1,2 1.2 1.7 5.2 2,920 FTE 4.9 % 23,950 Employees Absenteeism Monitoring (PAK) interviews 7,5 7,5 7.9 7,9 3.7 21,324 493,053 2,733,199 848,460 5,576,221 Table settings Glasses of draught beer Bitterballen Cups of coffee 4 * See Financial developments, p. 15

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    ANNUAL REPORT 2018 KEY FIGURES CONSOLIDATED INCOME STATEMENT STATEMENT OF FINANCIAL POSITION Amounts in millions of euro, unless stated otherwise 2018 2017 2018 2017 Revenue before gaming tax 656.5 639.2 Equity 222.8 211.3 Gaming tax -182.4 -170.5 Non-current liabilities 17.2 17.3 Net revenue 474.1 468.7 Current liabilities 102.4 102.3 Insurance claim 11.4 29.0 Total revenue 485.5 497.7 OTHER KEY FIGURES Operating expenses -403.3 -400.2 2018 2017 Operating result 82.2 97.5 Number of gaming tables 448 417 Financial income and expenses 0.4 - Number of slot machines (in casinos) 6,490 5,701 Share of profit of equity-accounted investees, net of tax 0.1 0.5 Result before corporate income tax 82.7 98.0 Visits Corporate income tax -23.2 -24.5 Number of visits (in thousands) 5,743 5,840 Result after corporate income tax 59.5 73.5 Spending per visit (in euro) 114 109 Other comprehensive income net of tax - - Total comprehensive income 59.5 73.5 Employees at year-end Number of employees (excluding stand-by employees 3,949 3,699 and trainees) Cash flow from operating activities 133.4 83.5 of whom Gaming & Casino Services 50 0 Full-time equivalents (fte) 2,920 2,708 Profitmargin (in %) of whom Gaming & Casino Services 49 0 (Result after tax / net revenue) x 100 12.6 15.7 Employee benefits (as a percentage of operating expenses) 59.9 56.4 Net revenue per average fte (in thousands of euro) 166 179 The key figures are not part of Holland Casino’s financial statements. 5

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    ABOUT HOLLAND CASINO PROFILE OF THE COMPANY The Dutch government awarded Holland Casino an exclusive licence to provide tables games in 1975 in an effort to provide the Netherlands with a safe and regulated gaming SUPERVISORY BOARD environment. We opened our first casino in 1976. From 1986, our licence was extended to include slot machines. We offer our guests exciting, surprising and reliable games in a familiar and exceedingly hospitable environment. These same principles will remain AUDIT in place once Holland Casino is allowed to provide online games, which we expect to be EXECUTIVE in effect from 2020. WORKS COUNCIL BOARD Following the opening of Amsterdam West- in the future. Holland Casino provides three Sloterdijk and the re-opening in Groningen, product groups: table games, supervised by GAMING & SERVICES FINANCE & CONTROL we once again have all 14 casinos in operation. specially trained and qualified croupiers, Spread right across the country and with the a wide range of slot machines, including video, exclusive right to provide table games. roulette, bingo and poker machines, and HUMAN RESOURCES INFORMATION SERVICES This makes Holland Casino the only real casino Food & Beverage (F&B). The core activities in the Netherlands. Holland Casino’s head Table games and Slot machines account for MARKETING & E-COMMERCE SECURITY & RESPONSIBLE GAMING office, opened in 2017, is located in Hoofddorp. the bulk of our revenue. F&B is becoming Holland Casino employs a total of 3,899 an increasingly important part of our core employees, 50 of whom at Gaming & Casino activities and indispensable to providing CORPORATE COMMUNICATIONS CORPORATE LEGAL & COMPLIANCE Services, the Company we acquired in 2018. the optimum guest experience. Secretary to the Board Holland Casino occupies a unique position in Holland Casino’s slot machines help the PURCHASING, RISK, PMO the Dutch and European gaming market, with Company to differentiate itself from other more than 40 years of experience and a operators, such as arcades and the catering trendsetting, internationally recognised and industry. Both the maximum stake and the NORTH NETHERLANDS SOUTH NETHERLANDS award-winning responsible gaming policy. payment percentage are higher, and Holland Amsterdam Centre Breda Holland Casino stands out thanks to its Casino has no maximum when it comes to Amsterdam West-Sloterdijk Eindhoven GAMING personal attention, high-quality hospitality prizes on individual machines or additional Enschede & Nijmegen Groningen Rotterdam and extensive care for all of its guests. progressive prizes. This is due to the fact that Leeuwarden CASINO Valkenburg SERVICES our responsible gaming policy and the Dutch Scheveningen Venlo B.V. In 2018, Holland Casino recorded total revenue Prevention of money laundering and financing Utrecht Zandvoort of EUR 656.5 million. Holland Casino is also of terrorism Act (Wwft) are designed specifically aiming to obtain a licence for online gaming, for that purpose. now that legislation will make that possible 7

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    ABOUT HOLLAND CASINO MISSION & STRATEGY VISION MISSION AMBITION STRATEGY Gaming is a part of life. We provide the most We understand the We develop long-term, exciting gaming needs of our guests personal relationships experience, always like no other and with our guests. welcoming and engaged. exceed expectations. Our strategy is based on five pillars: employees society guests innovation partnerships 8

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    ABOUT HOLLAND CASINO STRATEGIC STRATEGIC PILLARS PILLARS EMPLOYEES Clear division of tasks between head office and casinos Sustainable and up-to-date employment terms Leadership and talent development SOCIETY High-grade responsible gaming policy PARTNERSHIPS Social engagement through hospitality, Strategic partnerships social connection and local relevance strengthen Holland Casino Attention for sustainability in a dynamic market GUESTS Investing in guest experience INNOVATION Optimum and responsible use of data Innovating and improving Respond to the wishes of new generations concepts and products Realising online proposition Choice for omni-channel approach 9

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    ABOUT HOLLAND CASINO VALUE VALUE CREATION MODEL CREATION MODEL INPUT OUTPUT CORE VALUES FINANCIAL Engaged Friendly Solid financial position Surprising Reliable HUMAN REALISING SOCIAL OBJECTIVES Service-oriented employees BY CREATING A SAFE GAMING Execution responsible gaming policy ENVIRONMENT PRODUCTION TOOLS RETURN FOR OUR Gaming tables SHAREHOLDERS Slot machines F&B Casinos BUSINESS ACTIVITY OFFER OUR GUESTS A 9+ EXPERIENCE INTELLECTUAL Responsible gaming policy Hospitality ENGAGED EMPLOYEES Internal education / training In-house / own concepts / innovation Slot machines Food & Beverage Gaming tables GOOD REPUTATION AND SOCIAL AND RELATIONSHIPS STRONG BRAND Embedded in society Active relationship / contact with stakeholders Licences STRATEGIC PILLARS Government / legislation Employees Innovation Society Partnerships Guest 10

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    REPORT OF THE EXECUTIVE BOARD READY FOR THE FUTURE Holland Casino continued to build on its strong foundations in 2018, with the opening of new casinos, a sharp focus on our guest experience and a strong internal organisation. CEO Erwin van Lambaart and CFO Ruud Bergervoet explain. How would you describe this past year? warm summer period obviously had an Erwin van Lambaart: I’ve referred to this past impact on the number of visits. However, we period as a triple jump. Following a period of were able to largely compensate for that in the crisis, we returned to a structurally upward second half of the year, partly on the back of line in 2017 and defined our HC2020 strategy. targeted guest promotions and campaigns. Last year, we continued our recovery at That was quite an achievement. Our NPS full throttle and we made progress in the score (guest satisfaction) also remains high. realisation of our strategy. And we remained on course, despite of catching up we had to do. Ruud Bergervoet: Last year was a year in We will have to make ‘the leap’ in 2019/2020, which we returned to calmer waters and to actually make us the best casino operator worked on our priorities with renewed focus. in Europe. This will place enormous demands We were able to execute our 2020 strategy on the resilience of our organisation. Our without any unexpected hurdles, which was employees deserve a huge compliment for great. The good thing is that we were able to the fact that we continued to perform well accelerate the process and make investments, in these dynamic times. while our results remained solid. We invested more than EUR 56 million in the What do you consider the highlights new-build casino and the renovation of other of 2018? casinos, plus slot machines, gaming concepts, Van Lambaart: From Las Vegas to Monaco, our future online platform and system and casinos are asking themselves: how do we process improvements. The (re-)opening of appeal to the next generation? I am very We have to our casinos in Groningen and Amsterdam West-Sloterdijk will make a significant contribution to the continued growth of our proud of the concept we developed in-house: the Experience Zone in Utrecht. This is a tailor- made concept for new players that includes make a leap results in 2019. The unprecedented long, explanations of games, reduced stakes and in 2019 /2020. 12

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    REPORT OF THE EXECUTIVE BOARD ‘Great to see our entertainment. The atmosphere, setting and experience are very deliberately different from the rest of our offerings. This of the service activities of Gaming Support B.V. and we are very pleased with how these activities have been integrated. colleagues in concept is very distinctive and it has been highly successful. You know it’s special when people from our peer casinos all We replaced old systems and processes and improved our IT support for the casinos. Plus we made serious investments in Groningen have over Europe are now visiting us to see how successful this concept is. I also look back with a great deal of pleasure to the renewal of our games: we replaced no less than a sixth of our slot machines in 2018, so our guests can enjoy the latest in a ‘home’ again the very stylish opening of our new casino Amsterdam West-Sloterdijk, something our 1,500 invitees are still talking games. That is exactly what we stand for, after all. after the fire.’ about to this day. We also made progress in the way we work with each other. We’ve set up multidisciplinary teams in which colleagues from Our return to Groningen was a unique achievement. Within different departments work together on specific components of 16 months, we put together an atmospheric, temporary casino our strategy. Each of these teams helps to improve our guests’ on Sontplein, the first pop-up casino in the world. It is great to experience – the so-called guest journey – when they visit see how our 15 colleagues have found a ‘home’ again after the Holland Casino. This journey will look quite different in the fire in 2017. That was a very emotional moment for our future, mainly due to digitalisation and the omni-channel employees, who have been remarkably flexible in working at approach. other casinos after the fire. We also renovated our casino in Valkenburg, broke ground for our new casino in Venlo and These results do not come out of nowhere. prepared the site for the new casino in Utrecht. In other words, Which internal developments are behind them? we moved full steam ahead. Van Lambaart: The Executive Board, management and employees are now closer to each other. We are more unified We are also gaining more and more recognition for our than ever. And we have made major improvements in the achievements. Nijmegen won the ‘best casino in the cooperation with the works council. That creates trust. Netherlands’ award. We climbed to third from ninth place We worked together on a new form of openness in which we in our category in the MT500 list of best companies in the don’t always have to agree with each other but we can always Netherlands, ahead of companies like Starbucks and Pathé discuss things openly and constructively. The final outstanding cinemas. I’m also hearing more and more talk about issues from the collective labour agreement have been opened Holland Casino being considered a top company. That makes up to discussion and that has created an atmosphere of calm. us proud, but we need to stay modest and continue to take the We also devoted attention to the connection with the middle right steps in the years to come. management. We improved the position of shift leaders, who form a crucial Bergervoet: We also completed a lot of important work behind link in our operations, partly through the organisation of Shift the scenes last year. We completed a number of financially and leader days. We used those to actively seek a dialogue and operationally complex projects. We finalised the acquisition made them a real part of our strategy. 13

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    REPORT OF THE EXECUTIVE BOARD Bergervoet: I can see the distance between head office and What we are seeing in general is that our locations shrinking. This is partly the result of intensive room for manoeuvre and our room for cooperation on projects and innovations, of sharing results entrepreneurship seem to be getting smaller and successes, and because of the growing shared trust that and smaller. Even after a possible privatisation we are all working towards the same objectives. We have also and the opening up of the online gaming taken steps to improve the coordination of our marketing market, we will be faced with even tighter campaigns. The new nationwide campaign ‘the thrill of the secondary legislation. The gaming tax has game’ was innovative and put us on the map much more been raised temporarily and the prevention explicitly. Linking our IT, marketing and privacy policy also agreement will put even stricter limitations makes us more competitive. It creates a healthy balance and on smoking in the future. We discourage ensures that we can provide the best possible service to our smoking at our casinos, as the health of our guests responsibly and safely. guests and our employees is a priority, but that measure will still affect us. Which lessons from 2018 are you taking into 2019? Van Lambaart: Appreciation and attention for our regular Van Lambaart: Our strategy is solid. We are guests remains important. We still have to grow in terms of doing what we have to do and we are anti- new guests, so inflow, flow-through and hospitality are the key cipating future developments. Whichever way words for 2019. And we will be keeping a very close eye on how the political winds blow, we want to be the the growing competition affects us. We will also continue the best casino operator in Europe: the most dialogue with every part of our company. hospitable, innovative and safe. That is our ambition and nothing will change that. Bergervoet: We can still improve the responsiveness of the We will have to anticipate and respond to all Company, while simultaneously increasing the focus on our kinds of developments and legislation that priorities. We now have a solid foundation, so now it’s time affect us. It is up to us and our colleagues to to make our organisation even more effective and flexible to ensure we can compete effectively with other providers. take our healthy company into the future. To achieve that, we want to be able to operate responsibly and work together on a company Whichever way the How difficult is it to stay on course if the (political) environment changes? where élan, innovation, experience and reliability go hand in hand. political winds blow, Bergervoet: At the moment, it’s unclear whether the govern- ment will actually liberalise the market, but we are expected to be ready for it. And in the meantime, regulatory pressure is we want to be the increasing. best casino operator in Europe. 14

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    REPORT OF THE EXECUTIVE BOARD FINANCIAL DEVELOPMENTS Revenue CONSOLIDATED INCOME STATEMENT (x millions of euro) 2018 2017 Gross revenue before gaming tax came in at EUR 656.5 million, Revenue Table games 265.8 255.9 an increase of EUR 17.3 million compared to 2017 (EUR 639.2 million). The number of visits declined slightly Revenue Slot machines 340.0 332.2 to 5.7 million in 2018 (2017: 5.8 million), while average Gaming and non-gaming tips 23.0 23.6 spending per visit increased by 4.6% to EUR 114 in 2018, Food & Beverage revenue 24.4 23.6 from EUR 109 in 2017. Other income 3.3 3.9 Revenue before gaming tax 656.5 639.2 Revenue from Table games, including the revenue from Gaming tax -182.4 -170.5 Multi Roulette machines, came in EUR 9.9 million or 3.9% Net revenue 474.1 468.7 higher at EUR 265.8 million in 2018 (2017: EUR 255.9 million). Insurance claim 11.4 29.0 The revenue from Slot machines was EUR 7.8 million or 2.3% Total revenue 485.5 497.7 higher at EUR 340.0 million in 2018 (2017: EUR 332.2 million), partly driven by the opening of the Amsterdam West-Sloterdijk Depreciation and impairments -32.7 -43.3 casino and the replacement, renewal and innovation of Employee benefits -241.6 -225.8 slot machines. Other operating expenses -129.0 -131.1 Operating expenses -403.3 -400.2 Gaming and non-gaming tips (including tips for F&B and Operating result 82.2 97.5 Front Office activities) were down EUR 0.6 million at Financial income and expenses 0.4 0.0 EUR 23.0 million (2017: EUR 23.6 million). The Food & Share of profit of equity-accounted investees, net of tax 0.1 0.5 Beverage revenue came in EUR 0.8 million higher at Result before corporate income tax 82.7 98.0 EUR 24.4 million. Corporate income tax (VPB) -23.2 -24.5 Result after corporate income tax 59.5 73.5 The income of EUR 11.4 million pertains to the remainder of the insurance claim in connection with the fire in CALCULATION EBITDA (earnings before interest, taxes, depreciation and amortisation) Groningen (2017: EUR 29.0 million). See pages 86 and 87 of (x millions of euro) 2018 2017 the financial statements for more information on the financial Result before corporate income tax 82.7 98.0 impact of the fire in Groningen. Financial income and expenses -0.4 0.0 Expenses Share of profit of equity-accounted investees, net of tax -0.1 -0.5 Operating expenses were up 0.8% or EUR 3.1 million at Depreciation and impairments 32.7 43.3 EUR 403.3 million in 2018 (2017: EUR 400.2 million). EBITDA 114.9 140.8 15

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    REPORT OF THE EXECUTIVE BOARD Maintenance and service in our ‘own’ hands As of 2018, the participation in Gaming & Casino Services B.V. (GCS) is included in the consolidation, which accounts for some of the increase in the following expenses. A grating roulette cylinder or malfunction in the Mega Millions? We can simply fix that ourselves. Since 2018, Holland Casino has had its own maintenance arm for gaming tables and slot Staff costs increased to EUR 241.6 million in 2018, an increase machines. The people at Gaming & Casino Services B.V. (GCS) carry out all installation, of EUR 15.8 million (7%) from EUR 225.8 million in 2017. This maintenance and services activities on slot machines, gaming tables, casino signs and increase was due to an increase in the number of employees accessories for Holland Casino. (FTEs) to 2,920 at year-end 2018 (49 of whom are employed at GCS), from 2,708 at year-end 2017, in combination with a 2018 Holland Casino had and still has a stake of 40% in parent company Gaming Support B.V. salary increase under the collective labour agreement. GCS, which is based in Rotterdam, is the result of a demerger from Gaming Support B.V. Since 2000, this company carried out maintenance and services activities on Holland Casino’s Operating expenses declined by 1.6% or EUR 2.1 million to slot machines and table games on an exclusive basis. Holland Casino has now increased its EUR 129.0 million in 2018, from EUR 131.1 million a year earlier. interest in GCS to 60%, from 40%. The higher cost of premises (EUR 2.9 million) and higher marketing costs (EUR 3.0 million) were offset by lower other In 2017, Holland Casino evaluated its needs with respect to maintenance and services and the expenses in 2018. In 2017, this item included the one-off form of the cooperation. Now that the new GCS works exclusively for Holland Casino, it is easier transfer tax for the conversion of the Company from a to align and automate processes, and inventories of spare parts can be maintained more foundation to an N.V. (public limited company). The lower effectively and at lower cost. This creates cost savings for both parties. Gaming Support B.V. operating costs (EUR 2.4 million) were primarily due to the can now also focus more effectively on its own business. lower maintenance costs resulting from the acquisition of the participation in GCS, which is responsible for the maintenance of the slot machines. This pertains to a shift from maintenance costs to personnel expenses. In 2018, depreciation and impairments came in GAMING TAX EUR 10.6 million lower than in 2017. This was due to a (x millions of euros) 2018 2017 number of impairments in 2017 primarily related to the fire in Gaming tax Table games 80.0 74.2 Groningen (EUR 8.0 million) and an impairment on previously Gaming tax Slot machines 102.4 96.3 made investments for our online proposition (EUR 3.8 million). Total gaming tax 182.4 170.5 16

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    REPORT OF THE EXECUTIVE BOARD Operating result Financial position The result before corporate income tax declined to Solvency EUR 82.7 million, a sharp drop of EUR 15.3 million compared Equity had increased to EUR 222.8 million by year-end 2018, to 2017 (EUR 98.0 million). This decline was largely due to from EUR 211.3 million a year earlier. This was due in part to the lower revenue with respect to the insurance claim the addition of the undistributed result from 2018 (result Holland Casino received (EUR 11.4 million in 2018, from before remittance of profits) to the equity and the addition of EUR 29.0 million in 2017) and an increase in personnel costs GCS, plus the remittance of EUR 48.2 million from the profits of EUR 15.8 million. This was offset by higher net revenue of for 2017. This raised the solvency ratio to 65.1% (2017: 63.9%). EUR 5.4 million (net revenue would have been EUR 12.1 million higher at an unchanged gaming tax rate), a decline of Financing EUR 2.1 million in operating costs and a EUR 10.6 million The existing credit facility was changed in September 2018. reduction in depreciation and impairment costs. The total credit facility of EUR 140 million was reduced to EUR 120 million, none of which was used in 2017 and 2018. Investments Holland Casino has been subject to corporate income tax The term of the facility was extended by five years, with an In 2018, Holland Casino invested since 1 January 2016. The result after taxes came in at option of two additional extensions of one year each. We also EUR 53.3 million in property, plant and EUR 59.5 million in 2018 (2017: EUR 73.5 million). negotiated improvements to various terms, partly due to a equipment. These were investments in reduction in the interest margin and the reduction in the construction and renovation projects, mainly Holland Casino pays the State a gaming tax of 30.1% (up to and number of bank covenants. The credit facility has been entered those in Groningen, Valkenburg and Venlo and including 2018, this was 29.0%) on the monthly revenue from into with a consortium of banks comprising ABN AMRO (50%) other renovation projects (EUR 22.5 million), Table games and Slot machines. The 1.1% increase in the and ING (50%). Holland Casino will use this facility primarily but also in regular replacement investments gaming tax rate meant we paid an extra EUR 6.7 million in for the new-build projects in Venlo and Utrecht. We refer to (EUR 12.9 million). In addition, we invested gaming tax in 2018, which had a direct impact on the gross page 117 of the financial statements for an explanation of the EUR 17.9 million in new slot machines operating result. financial instruments. (2017: EUR 9.9 million). The actual payment of gaming tax over a financial year deviates from the figures above, as payments are made a Equity month in arrears. In addition to the payment of gaming tax, In 2018, Holland Casino paid a sum of EUR 48.2 million in Holland Casino is also legally liable to pay a gaming levy. dividend to the State. In 2018, we reached agreements on the The income from the gaming levy is used to finance the system for determining the amount of annual dividend to be Dutch Gaming Commission so it can carry out its paid. The definitive amount of dividend is determined after the supervisory tasks. In 2018, the total gaming levy balance sheet date (EUR 56.0 million). The remaining result amounted to EUR 1.0 million (2017: EUR 0.9 million). (EUR 13,5 million) will be added to the equity. 17

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    2018 HIGHLIGHTS / EXPERIENCE ZONE 2018 HIGHLIGHTS MANOUCK KWAKERNAAT: ‘ I SEE SMILING FACES EVERY EVENING’ Manouck Kwakernaat is an enthusiastic ambassador for the Experience Zone in Utrecht, the new gaming zone we developed especially for enthusiastic first-time players. ‘A relaxed atmosphere and vibe that puts people at ease and makes it easy for them to ask for explanations of the games and have a chat with one of us. That is one of the reasons why the Experience Zone works so well. I see smiling faces every evening and guests tell me they have such a great time. That makes me proud. The Experience Zone is up and running. We worked hard to make it all happen. I had to really step on it, because of course I was also still working my ‘normal’ hours at the traditional tables. But if I go for something, I commit 100%. That’s just the way I am. In the Experience Zone, our colleagues are the entertainers for our guests. That has to appeal to you. We were helped by a great external trainer, and now we can work as a team to make every evening a festive event. I want to take that enthusiasm to other casinos, so that we can start using this concept there too.’ 18

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    2018 HIGHLIGHTS / EXPERIENCE ZONE 2018 HIGHLIGHTS PLAY TOGETHER, SHARE TOGETHER New guests, new chances, new future. In games on offer. In the live game arena, the early July 2018, we opened the Experience ‘Stadium’, new players can play with friends Zone in Utrecht, a Holland Casino innova- or other visitors, and with guidance from tion in the field of gaming and experience. our hosts. The latter are there to support and motivate the guests, but also to make Everyone should be given the opportunity to sure they have fun. We devoted a great deal experience the thrill of the game in a low- of attention to the design of the Experience threshold manner. That is the idea behind Zone, which has an atmospheric and trendy the Experience Zone, which opened its look and feel. The central bar is where doors in Utrecht last year. The innovation is cocktails are produced and where guests 6 JULY very much in line with the trend of playing can place orders for the likes of like finger 2018 together with friends. Our ambition is to foods and snacks. And if you want to share expand the Experience Zone to other a photo on social media, you can do that casinos. too, because the game zone is the only area of the Casino where taking and sharing Every Friday and Saturday evening, guests pictures is allowed. can play Roulette, Black Jack, Diceball and other table games with relatively low Other casinos are also developing initiatives minimum stakes and extra attention to respond to the wishes of new groups of devoted to explaining all the aspects of the guests. For instance, in Valkenburg we have the Welcome Zone, where guests can play with low stakes. And guests can now play Live Bingo together in Amsterdam The innovation is a good West-Sloterdijk, as well as in Breda. fit with the trend of Holland Casino intends to open at least three full Experience Zones in its casinos playing with friends. in 2019. 19

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    REPORT OF THE EXECUTIVE BOARD OUR ENVIRONMENT Holland Casino opened its first casino in Zandvoort in Modernisation casino regime 1976. The Dutch government wanted to offer a legal Changes to gaming laws and regulations will have a major and regulated alternative to illegal gambling. A lot has impact on Holland Casino. The current Gaming Act (Wet op changed since then and Holland Casino is constantly de kansspelen – Wok) is already more than 50 years old. changing and adapting to its evolving environment. The Dutch government announced plans to modernise this law in its coalition agreement back in 2012. On 12 February 2019, Political, economic and technological developments have a the Justice and Security Minister halted the discussion of the major impact on Holland Casino’s future and its licence to legislation in the Upper House. The current draft legislation, operate. Our environment and the needs of our guests are if adopted, would effectively end Holland Casino’s 40-year constantly changing. To maintain and strengthen our leading public sector monopoly. The cabinet still intends to liberalise position in the casino market, we have no choice but to swiftly the gaming market and cautiously open it up to new parties. anticipate and respond to those developments. Over the past At the time of writing (spring 2019), it is unclear if the change few years, we have been working on our strategic long-term in legislation will be put to the Upper House and what form it plan HC2020. Continuously monitoring our environment will take if it is. puts us in a position to anticipate and respond to key trends and changing market conditions. In 2018, we identified the Challenge Holland Casino following relevant developments and related challenges in It is important for Holland Casino to retain sufficient competi- our environment: tive strength and flexibility to operate in this rapidly changing playing field. These changes and uncertainties are reflected in • draft legislation modernisation casino regime; our strategic choices and our approach to risk. The Executive • draft legislation remote gaming; • data technology and privacy legislation; Board is in regular contact with the Justice and Security Ministry and the Finance Ministry to discuss the progress We must be able • ageing of the population. of the proposed liberalisation of the market. We are also to respond swiftly preparing for a range of potential scenarios. In our strategy, we describe how we deal with these trends and to developments to changing market conditions. In the Risk management section of this annual report, we explain the measures we take to deal maintain our leading with the associated risks. position. 20

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    REPORT OF THE EXECUTIVE BOARD Introduction Remote Gaming Act For Holland Casino, the introduction of the Remote Gaming Act (Koa) will effectively legalise online gaming services. It also The GDPR gives our guests and means that we would be able to enter the online casino employees more control over market once we have obtained a licence. The Dutch House of Representatives voted in July 2016 to adopt the draft legislation their own information. and the Dutch Upper House followed suit on 19 February 2019. The draft legislation includes additional measures regarding licence terms and conditions and the reduction of gambling addiction. Holland Casino will apply for a licence from the Dutch Gaming which came into force on 25 May 2016. In the course of its Commission as soon as this is possible. We expect this to be day-to-day operations, Holland Casino processes the personal sometime in mid-2020. Providers will have to meet the strict data of its employees, casino guests and the visitors to its conditions set out by the Dutch Gaming Commission to qualify website. The processing is the personal data is subject to for a licence. privacy and data protection legislation. Challenge Holland Casino The privacy legislation (GDPR) was tightened last year and We see opportunities in operating an online casino and see Holland Casino tightened its own privacy policy in line with it as our social responsibility to offer safe and responsible these changes. One of the effects of the GDPR is that our gaming. With the unique combination of land-based and guests and employees have more control over their own online casinos, we are targeting an omni-channel strategy. personal data. This will combine a unique and innovative product range and a clear focus on our Responsible Gaming Policy (Preventiebeleid We drew up a concrete plan of action on the basis of a GDPR Kansspelen – PBK). As a trusted party, Holland Casino wants Gap Assessment conducted by an external party. As a result, to raise the bar in terms of responsible gaming policy. Just as Holland Casino has been compliant since 25 May 2018. This we already do in our current 14 physical casinos. Another means we are transparent about how we use personal data, challenge for Holland Casino is that it will be competing we ask permission for this use and we only store data that is with a number of foreign players in the online market. specifically needed for our business objectives. Data technology and privacy legislation Holland Casino has formulated privacy principles, put a solid Our guests’ and employees’ right to privacy and to the privacy policy in place and appointed a Privacy Officer. We can protection of their personal data is currently laid down in the now state that we are in compliance with current privacy European Union’s General Data Protection Regulation (GDPR), regulations. 21

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    REPORT OF THE EXECUTIVE BOARD Challenge Holland Casino includes a number of important agreements on the sustain- Holland Casino wants to use the available data safely and able employability of our employees and employment responsibly. We want to get to know our guests even better continuity. We reached agreement on the finer details of and execute our Responsible Gaming Policy (PBK) even more this sustainable, future-proof agreement with our social effectively. And we will of course always operate within the partners in 2018. parameters of privacy laws and regulations. Our current gaming guests are and will remain our top priority. But in addition to this, we will develop and test innovative Ageing of the population concepts we can use to attract new target groups. One example The proportion of older people in the overall population is of this is the highly successful Experience Zone we launched in increasing (ageing of the population). This has a range of our Utrecht casino in 2018. consequences for our society. The ageing of the population will also lead to an increase in the Holland Casino’s challenge number of lonely elderly people. Holland Casino considers it as The average age of both our employees and our guests will part of its social responsibility to help provide meaningful and increase in the years ahead. This trend means we will have social ways to spend time. Several of our casinos are already to make strategic choices. In 2017, Holland Casino reached doing this, for instance by organising bingo evenings and agreement on a new collective labour agreement, which dinners in care homes. 22

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    REPORT OF THE EXECUTIVE BOARD STAKEHOLDER REGULATORS OVERVIEW Expectations Regulators such as the Dutch Gaming • Draft legislation on remote gaming • Meeting with new executive of the Gaming Commission (Ksa), the Dutch Central Bank Commission Holland Casino attaches a great deal of importance to the (DNB) and the Dutch Data Protection Agency • Game innovation (pilots and skill-based values, interests and requirements of all our stakeholders. expect us to make sure our guests play gaming) We consider it important to maintain an open dialogue responsibly and safely. The regulators also • Reports on incidents and complaints and conduct formal and informal discussions with our expect Holland Casino to abide by current laws • Outcome relevant audit reports on the 2018 stakeholders. This is how we learn what our stakeholders and regulations. This includes an adequate licence year expect from us and how we can meet those expectations. Responsible Gaming Policy, an anti-money • Advertising and recruitment activities We monitor and evaluate our stakeholder management on laundering policy and compliance with the • Responsible Gaming a regular basis. GDPR. Response Below you will find an overview of our main stakeholder groups. Type of contact • Holland Casino provides the Dutch Gaming We outline the contacts we had with these groups in 2018, as well Holland Casino has quarterly meetings with Commission (Ksa) with quarterly reports, as the actions we took as a result of those contacts. the Dutch Gaming Commission and scheduled including an overview of income and meetings at administrative level. We also have expenses, developments in the field of Table regular ad hoc meetings. In addition to the games and Slot machines and information execution of the Responsible Gaming Policy, on themed campaigns and incidents. the Gaming Commission also supervises • Holland Casino submitted various audit compliance with the Dutch Prevention of reports and provided an oral explanation money laundering and the financing of of same. terrorism Act (Wwft). Holland Casino has • Holland Casino and the Gaming Commission semi-annual meetings with the Dutch Central are in talks on Responsible Gaming. Bank (DNB) and every six months we deliver a • Holland Casino reports annually to the European Central Bank (ECB) Decree 2010/14 Gaming Commission on the embedding of report. Contacts with the Data Protection integrity and trustworthiness of employees Agency are on an ad hoc basis. in the organisation. • Holland Casino submitted consultation Topics of discussion in 2018 responses and in doing so contributed to • Compliance with Dutch gaming laws and projects such as the ‘Market scan land-based regulations and financial supervision gaming 2018’. legislation (Wft, Wwft and Sanctions Act) 23

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    REPORT OF THE EXECUTIVE BOARD SHAREHOLDER FINANCIERS GAMING SECTOR Expectations Topics of discussion in 2018 Expectations Expectations Holland Casino is a State shareholding and • Holland Casino’s financial performance Financiers such as banks expect Holland Major players in the gaming sector, including the Finance Ministry is the 100% shareholder. • Dividend policy Casino to have an adequate administrative organisations such as the European Casino The ministry expects us to comply with the • Change to credit facility organisation and internal controls, to be Association, the Dutch Gaming Platform requirements that apply to State share- • Evaluation and remuneration of the transparent regarding its financial perfor- (Nederlands Kansspelplatform) and foreign holdings and licence holders. It also expects members of the Executive Board and mance and reporting and to comply with casinos, expect Holland Casino to comply with Holland Casino to take any steps required to Supervisory Board covenants, legislation and regulations. gaming legislation and regulations, just like enable the proposed liberalisation of the • Proposed liberalisation of the gaming other players in the sector. Other parties gaming market. market Type of contact expect Holland Casino to serve as an example • Proposed privatisation of Holland Casino The CFO has regular contacts with the banks. through its Responsible Gaming Policy and to Type of contact • Business cases (development new casinos share its knowledge of same with the sector. The Executive Board has regular contacts with and renovation projects) Topics of discussion in 2018 the Finance Ministry. And there are periodic • Financing structure and refinancing Type of contact contacts between the Finance Ministry and Response • Market developments Holland Casino consults regularly with all the chairman of the Supervisory Board. • The aforementioned consultations ensure • Liberalisation of the gaming market national and international organisations, The Finance Ministry and the Holland Casino that Holland Casino can cooperate with the primarily to exchange know-how and experi- Executive Board have scheduled meetings shareholder both transparently and to the Response ence and discuss trends and developments. every quarter. In addition, these parties full satisfaction of both parties. • Holland Casino shares its quarterly results consult on an ad hoc basis regarding specific with the banks Topics of discussion in 2018 subjects. A steering group including represent- • Holland Casino informs the banks on the • Trends and developments in the range of atives of the Finance Ministry, the Justice and realisation of the bank covenants gaming options Security Ministry and Holland Casino also • Draft legislation remote gaming meets regularly to consult on the proposed • Secondary regulations based on remote liberalisation of the gaming market and gaming draft legislation the potential subsequent privatisation of • Gaming tax Holland Casino. • Responsible Gaming Policy Response • Holland Casino has a seat on the board of the European Casino Association. • Holland Casino representatives regularly speak at national and international conferences in the field of gaming. 24

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    REPORT OF THE EXECUTIVE BOARD OTHER GOVERNMENT INSTITUTIONS SOCIETY Expectations • Responsible Gaming Policy Expectations • Attention for sustainability and CSR The Justice and Security Ministry and the • Draft legislation remote gaming and the The vast majority of our guests greatly enjoy • Development teaching programmes and Dutch Gaming Commission expect Holland consequences for the Responsible an evening out at our casinos. We realise guidance for students Casino to operate in line with the objectives of Gaming Policy that what we provide has its risks, such as • Combatting fraud and money laundering Dutch gaming policy guidelines. The ministry • Draft legislation Modernisation Gaming gambling addiction and money laundering. and parliament also expect Holland Casino to Casinos regime We are very aware of those risks and consider Response share its current knowledge of the gaming • Promotional gaming code it a given that we do our utmost to limit • In consultation with the Dutch addiction market. • Construction of casinos in Amsterdam those risks. Society expects us to accept our care and prevention organisation West-Sloterdijk, Venlo, Utrecht and responsibility in society. Holland Casino Verslavingszorg Nederland, Holland Casino Local authorities expect Holland Casino to temporary casino in Groningen chooses to take that responsibility beyond has further tightened its Responsible comply with relevant directives and permit • Accessibility casinos mere compliance with laws and regulations. Gaming Policy, which now includes earlier requirements when opening or renovating • Charitable organisations and social interventions in the case of young adults. local casinos. Provincial and local authorities initiatives Type of contact • Together with scientific and addiction care expect Holland Casino to create employment • Building and operating permits Holland Casino regularly exchanges expertise organisations, Holland Casino is developing for the region and that it strives to be a good with care providers, experts, researchers and an online Responsible Gaming Policy. employer. Response relevant organisations about its Responsible • Targeted investments in sustainability • The Justice and Security Ministry is part of a Gaming Policy. Holland Casino also initiated measures in the development plans for Type of contact steering group with the Finance Ministry and an advisory group, in which we cooperate with Venlo, Utrecht and Groningen. Holland Casino has regular, scheduled Holland Casino, which regularly discusses the Amsterdam UMC teaching hospital, • In 2018, Holland Casino made contributions consultations with the Justice and Security the proposed liberalisation of the gaming Radboud University Nijmegen, the Trimbos to various national and local causes, Ministry and the various spokespersons in market. Institute, ASSISSA, Jellinek, HANDS and the including the Elfstedenzwemtocht by parliament. • Holland Casino makes an active contribution AGOG foundation. Holland Casino also actively Maarten van der Weijden. to the consultations regarding secondary engages with schools and other educational • Holland Casino works with local senior The local casino managers and Head Office regulations resulting from the current draft institutions. secondary vocational (MBO) schools and employees have regular contacts with local legislation. other educational institutions and provides authorities at official and administrative • Casinos and building and renovation projects Topics of discussion in 2018 students’ work experience internships. levels. The CEO also has ad hoc contacts with are determined in close consultation with • Responsible Gaming Policy local authorities at administrative level. provincial and local authorities. In 2018, • Exchange of know-how on addiction care Holland Casino reached agreement with • The opening of the online gaming market Topics of discussion in 2018 the local authorities in Groningen on a and the Responsible Gaming Policy • Dutch Gaming Act and secondary regulations temporary casino. • Pilot with a view to rolling out extended to be developed opening hours 25

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    REPORT OF THE EXECUTIVE BOARD SWOT ANALYSIS Holland Casino conducts annual assessments of its position with respect to the opportunities and challenges in the market in which it operates. Below, you will find a summary of our assessment of our key strengths and weaknesses and opportunities and threats at the end of 2018. • Strong brand with very high brand recognition • Internationally leading Responsible Gaming Policy STRENGTHS • Expertise in the field of hospitality • Market leader • Excellent know-how of the industry • Entry to online gaming market • Stable financial results • Partnerships • High-end casinos in A-locations OPPORTUNITIES • Expanding product and services portfolio through innovation • Attracting new target groups • Liberalisation of the gaming market • Relatively high level of fixed overhead WEAKNESSES • Monopolist • Dependent on political decisions • Sensitive to economic developments • Complex organisation in a constantly changing THREATS market • Liberalisation of the gaming market • Limitations on innovations and secondary activities • Gaming vs. Gambling: game of chance elements in (online) games 26

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    REPORT OF THE EXECUTIVE BOARD MATERIALITY MATRIX 2018 The materiality matrix shows which aspects are material to Holland Casino and its stakeholders and to 1 what extent these aspects need to be addressed in the HIGH 4 2 annual report. Relevant aspects are assessed on the Material to our stakeholders 3 basis of the level of materiality to both the Company 8 and its stakeholders. 5 MEDIUM 12 Holland Casino’s materiality matrix was drawn up on the 13 9 basis of the risk analysis together with input obtained 6 10 7 11 during discussions with stakeholders. This is based on Holland Casino’s mission, vision, ambition and strategy. 14 LOW 15 16 LOW MEDIUM HIGH Material to Holland Casino MATERIAL ASPECTS 1 Safe & responsible gaming 9 Innovation 2 Privacy & security 10 Profitability 3 Hospitality & guest experience 11 Sustainable employment terms 4 Changing legislation 12 Compliance 5 Political decisions 13 Competition 6 Social engagement 14 IT infrastructure 7 Education & development 15 Automation of processes 8 Digital transformation 16 Rebuilding and renovation casinos 27

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    REPORT OF THE EXECUTIVE BOARD RELATIONSHIP MATERIAL ASPECTS AND STRATEGIC PILLARS STRATEGIC PILLAR MATERIAL ASPECT 8 Digital transformation INNOVATION 9 Innovation 16 Rebuilding and renovation casinos 2 Privacy & Security EMPLOYEES 7 Education & Development 11 Being a good employer 2 Privacy & Security GUESTS 3 Hospitality & guest experience 9 Innovation PARTNERSHIPS 1 Safe & responsible gaming 4 Changing legislation 6 Social engagement 12 Compliance SOCIETY 5 Political decisions 10 Profitability 13 Competition OVERALL HOLLAND CASINO 14 IT infrastructure 15 Automation of processes 28

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    2018 HIGHLIGHTS / OPENING AMSTERDAM WEST 2018 HIGHLIGHTS LIZ WEEKERS: ‘I KNEW RIGHT AWAY: THIS IS WHERE I WANT TO WORK’ As a young girl, she used to dream about working at a casino and now Liz Weekers is making that dream a reality in the newly opened Holland Casino in Amsterdam West-Sloterdijk. ‘I used to think of casinos as places with Las Vegas-style glamour, and I was attracted to that. But once I started to learn about the industry, I realised it is much more than that. Holland Casino has a good responsible gaming policy, something people in a lot of places around the world could learn from. When I heard that a new location was opening, I immediately knew I wanted to do my internship there. Now I’m employed here, partly in the marketing & sales department and partly in the casino itself. The special thing about this location is that there are several colleagues with more than one role. We have service staff who are also croupiers, slot machine staff who help in F&B and managers who work in different depart- ments. That means you get to know the casino through and through and it means we can truly offer our guests that 9+ experience. In the coming year, we will focus mainly on new visitors, with our Live Bingo concept. This offers new guests a low threshold introduction to the casino. I also often work at the Bingo and it really is quite an experience. We will be open 24 hours a day from February 2019. That’s quite logical for a city like Amsterdam.’ 29

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    2018 HIGHLIGHTS / OPENING AMSTERDAM WEST 2018 HIGHLIGHTS CHAMPAGNE FOR NUMBER 14 A trendy interior, the latest games and a course we poured our guests a glass of luxury restaurant: this is all in line with champagne. Holland Casino’s strategic renewal drive. The new casino is Holland Casino’s 14th We have our first new casino in 14 years. location in the Netherlands, with more than The new casino in Amsterdam West- 500 slot machines. Guests can play at the Sloterdijk was made possible by the release latest roulette and blackjack tables and play of the licence for our Schiphol casino. Live Bingo, while a spacious Multi Roulette We celebrated the official Grand Opening Arena offers our guests the opportunity to in September 2018 with a lightshow, fire play along directly with roulette tables in dancers, Cirque du Soleil-style acrobatics other Holland Casino locations. and music from artists including Fedde le Grand. More than 1,500 guests, VIPs, Chef Sebastiaan Veenhuizen, winner of the business contacts and Holland Casino prestigious culinary contest ‘Het Glazen colleagues walked the red carpet. Kalf’ in 2017, heads the kitchen and has opted for a shared dining concept in line with the latest leisure and entertainment trends. The opening was shared We also executed a major modernisation with colleagues across of the interior at our Valkenburg casino in the country via a 2018. Thanks to a drastic renovation of the 27 gaming room and restaurant at the casino, SEPT livestream. guests can now dine while enjoying a 2018 spectacular view of the Geul river valley. We shared the opening with colleagues The casino remained open during the across the country via a livestream. renovations. In September 2018, we Colleagues and guests in other organised a range of festive events to Holland Casinos also joined in the mark the official opening of the newly celebrations: the grand opening ceremony renovated part of the casino. was broadcast live to those casinos, and of 30

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    REPORT OF THE EXECUTIVE BOARD New brand campaign is all about the details TABLE GAMES ‘The thrill of the game’: that was the slogan for the new brand campaign Holland Casino launched in 2018. This kicked off with a series of innovative TV commercials that highlighted the The number of gaming tables increased to 448 in game elements that really matter: the little ball in Roulette, dice and the playing card. This was a 2018 (2017: 417 tables), following the opening of the new approach for us, as Holland Casino had never before given viewers quite such a close-up new casino in Amsterdam West-Sloterdijk and the look at gaming. temporary casino in Groningen. We are gradually replacing all our gaming tables with the latest models The campaign harked back to the original power of the Holland Casino brand: the product of gaming table. experience. That is what draws both regulars and first-time visitors to our casinos. But how can you film that experience? We put advertising agency INDIE to work to find an answer to that We expanded the number of Multi Roulette units across our question. They came up with an ingenious way to bring Holland Casino’s three main table games casinos in the Netherlands to 873 units in 2018, from 78 the – American Roulette, the game of dice and card games – to life on the screen. previous year. In Multi Roulette, players can use a screen to Holland Casino asked the innovative Swedish director Oskar Wrangö (Volkswagen, Mitsubishi, join the game at an American roulette table at a casino of McDonald’s and IKEA) to direct the production. He sought to highlight the crucial role of the their choice. tiniest details that ultimately determine whether a guest wins or loses by zooming into the roulette ball or the edge of the dice to catch the smallest details in extreme close up. New games Minuscule hyper-sensitive cameras and a robotic arm helped make the tension of the moment Following the success of the new table game Live Bingo in tangible in viewers’ living rooms, right down to the tiny specks of dust taking to the air when the Breda, we have now also made the game available in dice strikes the table. Amsterdam West-Sloterdijk. At Holland Casino Utrecht, we added Classic Bingo, which was previously only available at We will continue the campaign in 2019, and extend it to focus our Amsterdam Centre casino. on the experience of an exciting night out at the casino. We have now rolled out the Diceball game across the country. We added eight Diceball tables and we plan to increase this number in 2019. The dice game is a derivative of the well- known game Craps. In addition to Diceball, Holland Casino Venlo now also offers its guests the dice game Casino Barbut, which we developed in-house. Casino Barbut is based on the Middle Eastern (street) game Barbut. Easily accessible games for first-time players In Utrecht, we opened an Experience Zone in 2018. This lively entertainment zone is aimed at novice players. In an arena- style set-up, it offers guests the chance to play along with various live table games including Roulette, Black Jack and 32

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    REPORT OF THE EXECUTIVE BOARD The biggest Punto Banco. Croupiers provide the players with help and guidance and we use a large video wall to provide instructive Over the course of a week, a total of 13 different tournaments were played, including the Main Event. poker event in animations. Our croupiers and other staff explain the rules of the various games and the zone offers table games with Once again, Holland Casino Rotterdam hosted the World Series the Netherlands was relatively low stakes, such as Diceball. The Experience Zone is just one of the innovations Holland Casino is currently of Poker, the largest and oldest poker event in the world. During this event, players competed in 18 different tourna- won by TV producer introducing in the field of gaming and experience. ments, including 11 Ring Events with varying buy-ins and formats. Alberto Stegeman. We have also launched initiatives for novice players in other casinos. For instance, every casino except Amsterdam At the end of November 2018, Holland Casino Amsterdam West-Sloterdijk has a Millennial Zone. Depending on the size of Centre hosted the 27th edition of the Master Classics of Poker, the casino and other considerations, this zone can be part of the largest poker event in the Netherlands. Well-known Dutch the main room or located in a separate area. TV presenter and journalist Alberto Stegeman won the tournament. Poker tournaments at Holland Casino Holland Casino once again hosted a number of major poker Holland Casino Breda hosted the Dutch Open Poker Series final tournaments in 2018. In April, Holland Casino Centre hosted in December, following a year of poker playing in the various the World Poker Tour (WPT) for the fourth time in a row. casinos around the country. 33

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    REPORT OF THE EXECUTIVE BOARD SLOT MACHINES To make sure we can always offer our guests a varied and modern range of games, Holland Casino constantly updates and refreshes its slot machines. In 2018, we replaced 1,002 of our 6,463 slot machines. We also introduced new game varieties on 812 existing machines. Holland Casino adds branded themes to In 2018, the jackpot of almost EUR 2.8 million constantly enrich the overall experience of its was won in Eindhoven. In the course of the slot machines. In Amsterdam Centre and year, guests won nine smaller jackpots, one of Utrecht, we are running a pilot with machines EUR 150,000 and eight of EUR 75,000. based on the popular television format The Voice. Other branded themes include Game In addition to the Mega Millions Jackpot, six of Thrones and Monopoly Millionaire. casinos have a total of 52 slot machines that offer a Tree of Wealth jackpot, with a national Since its opening in May 2018, the Amsterdam jackpot starting at EUR 30,000. West-Sloterdijk casino has offered more than 500 slot machines. The temporary casino in Groningen is home to 284 slot machines. In April 2018, a guest Our casinos in Breda and Nijmegen are currently running pilots with tournament won a jackpot of almost slot machines, which enable guests to play EUR 2.8 million in Eindhoven. against each other. This adds a competitive element to the game. And finally, in Rotterdam we successfully completed the pilot with extended opening Following the opening of Amsterdam hours for the slot machines. We are currently West-Sloterdijk and the temporary casino in assessing whether we want to introduce these Groningen, we now have 180 slot machines extended opening hours at other casinos. that offer the chance to win a Mega Millions The extended hours have been in effect in Jackpot of EUR 75,000 (stake EUR 1) to at Amsterdam West-Sloterdijk since 1 February least EUR 1 million (stake EUR 5). 2019. 34

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    REPORT OF THE EXECUTIVE BOARD FOOD & BEVERAGE We are introducing To ensure that Holland Casino provides a complete an ever-increasing range guest experience, we continue to innovate on the Food & Beverage (F&B) front. We are introducing an of distinctive catering . ever-increasing range of catering concepts that meet the wishes and needs of our current and new guests. Our ‘Global’ concept is an excellent example of these new concepts. Following the successful introduction of Global Kitchen in Rotterdam, we launched a second variation of the concept in our new Amsterdam West-Sloterdijk casino: Global Dining. Like Global Kitchen, this concept is based on Asian, Mediterranean and Latin American cuisines. Global Dining is a more high-end version, offering guests a number of extended dining options. In 2018, we completely renewed the F&B facilities in Valkenburg. We now offer both an à la carte restaurant and a brasserie. Plus we opened a bar with large screens so guests can watch live sports and other televised events. Holland Casino continues to invest in its F&B facilities to meet the latest demands in our own restaurants. In 2018, we renovated and renewed the kitchens in Breda, Nijmegen and Zandvoort. The restaurants at all of our casinos have digital menu pillars, giving guests easy digital access to the menu in four languages. 35

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    2018 HIGHLIGHTS / ELFSTEDENZWEMTOCHT 2018 HIGHLIGHTS HUUB PETERS: ‘I CARRIED MY MOTHER WITH ME’ Four years ago, Huub Peters, shift leader table games in Enschede, lost his mother and aunt to cancer in a short space of time. When Holland Casino was partnering Maarten van der Weijden’s Elfstedenzwemtocht, he immediately knew he had to join in. ’I wasn’t much of a swimmer at all. But I became one, thanks to Maarten van der Weijden. What a hero, to swim the entire Elfstedenzwemtocht to collect money for cancer research. I immediately signed up for the City Swim in Sloten and began training, both in the pool and in a lake. I appealed to colleagues and friends for sponsorship via leaflets and social media. And it worked. I collected more than EUR 2,000, far more than I expected. The City Swim in Sloten was cancelled due to poor water quality, but thankfully our group of 13 colleagues was able to join a swim in the IJ in Amsterdam. The ijSWIM was hard, but crossing the finish line gave me a huge sense of satisfaction. I carried my mother and aunt with me. They would have loved it.’ 36

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    2018 HIGHLIGHTS / ELFSTEDENZWEMTOCHT 2018 HIGHLIGHTS SWIMMING FOR EACH OTHER AND FOR ANOTHER Holland Casino was quick to support amount of publicity, collected EUR 5 million Maarten van der Weijden in his quest to for the Dutch Cancer Society KWF. swim the complete ‘Elfstedenzwemtocht’ through Friesland. This move is fully in Holland Casino employees – from cleaner line with our goal of making an active to CEO – managed to raise EUR 37,903 contribution to a better quality of life through sponsored swims in the ijSWIM in for everyone. Amsterdam in September. 18 AUG 2018 Maarten van der Weijden personally As a ‘founding father’, Holland Casino was collected the cheque at the Holland Casino one of the first organisations to commit to head office. An additional contribution Van der Weijden’s cause. The support for came in the form of EUR 19,500 collected the swimmer is a seamless fit with via the Zip line at the Mysteryland dance Holland Casino’s aim to contribute to a music festival, which was sponsored by better society. Our casinos also support Holland Casino. various local initiatives. In Venlo and Nijmegen, for example, we organise An extreme, heroic tour of three days dinners for lonely elderly people and without sleep, to collect money for cancer supported the Heart foundation and the research, made Maarten van der Weijden MEtakids foundation. In Valkenburg, we the Netherlands’ national hero in the teamed up with our guests to donate money summer of 2018. And while he was unable to research by the Paediatrics department to complete the entire tour – he retired of the Maastricht University Medical Centre. on doctors’ advice after 2 ½ days, just Maarten van der Weijden is also planning before reaching Dokkum – he did cover to make his Elfstedenzwemtocht in 2019, 163 kilometres and, helped by a huge once again sponsored by Holland Casino. Holland Casino wants to make an active contribution to a better society. 37

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    REPORT OF THE EXECUTIVE BOARD DEVELOPMENTS AT CASINOS Construction and renovation projects This is also underlined by the spectacular design’s nomination Holland Casino wants to provide the best possible guest for the World Architecture Festival (WAF) award in the category experience, which is why we continuously invest in our Leisure Led Development. We expect to take the new casino on casinos. In September 2018, we finished a complete renovation Floralaan at the Tradeport Oost into operation in late 2020. at Holland Casino Valkenburg, during which we renewed both Holland Casino will remain open at its current location until the lay-out of the gaming room, the overall look and feel of the the new building is ready. casino and its catering facilities. In Utrecht, on Winthontlaan near the A12, we are building an Following the opening in June 2018, the official and festive entirely new casino. Guests can find us at the existing location Grand Opening event of the Amsterdam West-Sloterdijk casino on the Overste den Oudenlaan until the opening. took place at the end of September 2018. The opening was a huge success, attended by more than 1,500 visitors, and offering In December 2018, Holland Casino opened the first premium performances from well-known Dutch artists such as Fedde Le pop-up casino in the world on Sontplein in Groningen. It is a Grand, Trijntje Oosterhuis, Berget Lewis and Jan Versteegh. pop-up, because it will be a casino for just a few years. And it is premium, because it turned out to be a casino with a great deal Construction work for the new casino in Venlo started in of style. We had to close our casino in Groningen after a fire in October 2018 under the watchful eye of the mayor of Venlo. 2017. We are currently in talks with the local authorities in The casino will be one of the most modern and innovative Groningen about a new permanent location. casinos in Europe. The casino in Venlo will be one of the most modern and innovative casinos in Europe. 38

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    REPORT OF THE EXECUTIVE BOARD OUTLOOK Economic growth is expected to continue in 2019, although happen in 2020. We are targeting an omni-channel strategy. the peak in this growth seems to be behind us. What is more, Our innovative products, our trendsetting Responsible Gaming (international) political decisions may have a negative impact Policy (PBK) and our prevention of money laundering and on consumer confidence. Despite this, we believe the strategic financing of terrorism and privacy policies will play a crucial choices we made in 2017 and 2018 have put us in a good role in this omni-channel strategy. position to respond to the challenges we will face in the year ahead. We operate in a dynamic playing field. The Upper House has put the decision on the privatisation of Holland Casino on The Amsterdam West-Sloterdijk and Groningen casinos will hold for the time being. However, it is vital for us continue once again make a full contribution to Holland Casino’s to prepare for all changes that may come, so we can respond operations in 2019. We will continue to make substantial to those changes effectively, flexibly and in an agile manner. investments in innovative gaming concepts, the online casino, Our strategic plan HC2020 will enable us to build a strong and new F&B concepts, renovation projects, new construction in future-proof Holland Casino able to anticipate and respond to Utrecht and Venlo and the improvement of the leadership and any developments we may encounter on our path in the future. culture at Holland Casino, all to maintain our leading position in the Dutch gaming market. Other major priorities include the continued optimisation of our internal processes and the development of new marketing concepts in cooperation with partners. In addition to this, we also want to explicitly meet our social responsibilities and contribute as a company to a sustainable society and social engagement. We will continue to build long-term and personal relationships with our valuable guests. One of our challenges is to remain relevant to a new generation of guests. This is why the continued development of Experience Zones is one of our top priorities. In 2019, Holland Casino will also continue its preparations for the online gaming market. We want to be ready to start as soon as this is legally possible, once the Remote Gaming Act comes into force. We expect this to 39

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    REPORT OF THE EXECUTIVE BOARD OUR GUESTS At Holland Casino, we do everything in our power to Holland Casino’s guest-facing policy focuses on three spear- make sure that the more than 1.1 million guests who heads: responsible gaming, fair and reliable games and visit our casinos have a surprising and exciting evening. guaranteeing a safe gaming environment. The satisfaction of our guests is expressed in the Net Promoter These spearheads are based on the three public objectives of Score (NPS), which we measure by asking our guests to fill out the Dutch Gaming Commission (Kansspelautoriteit – Ksa): a questionnaire. Each week, a randomly selected group of preventing gambling addiction, protection of consumers and 6,000 Holland Casino visitors is asked to participate in the combatting fraud and criminality. guest experience survey. Around 700 to 800 people respond to this request. Holland Casino considers care for its guests one of its core tasks. That also means that we ensure that our guests play The NPS is a key indicator for customer satisfaction and safely and responsibly. Holland Casino developed the Respon- customer loyalty. The most important question we ask is sible Gaming Policy together with addiction care organisations We ensure that our how likely it is that our guests recommend Holland Casino to others. In 2018, the NPS fell slightly to 29 when compared in the Netherlands. The policy is supervised by the Dutch Gaming Commission. The commission is currently drawing guests can play safely to 2017 (30). The casinos in Scheveningen, Valkenburg and up a duty of care guideline that is expected to be completed in and responsibly. Amsterdam-West saw a significant increase in their NPS. Of all promoters (the group who gives the casino a 9 or 10 mid-2019. out of 10), 84% cited the atmosphere as the biggest In addition, an advisory group of external experts has been set recommendation. up, which regularly evaluates the Responsible Gaming Policy, but also discusses recent developments in the market and In 2018, we launched a guest panel of some 7,000 guests, who topics such as the arrival of the remote gaming draft legisla- are regularly asked their views on subjects such as advertising tion. The advisory body meets twice a year and, in addition campaigns, events and other marketing activities. to Holland Casino, comprises teaching hospital Amsterdam UMC, Radboud University Nijmegen, the Trimbos Institute, Responsible gaming Assissa, Jellinek, HANDS and the AGOG foundation. We are aware that there are risks associated with games of chance. On the basis of its Responsible Gaming Policy After consultation with the advisory group, we implemented a (Preventiebeleid Kansspelen – PBK), Holland Casino wants new control measure in 2018, following the pilot with extended to provide its guests with the opportunity to participate in opening hours in Rotterdam. To prevent guests from playing in the gaming we offer safely and responsibly. our casinos for too long, we now conduct interim checks to establish the duration of their stay. 40

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    REPORT OF THE EXECUTIVE BOARD Responsible Gaming Policy The Responsible Gaming Policy states that players are in 2. Information and awareness The policy is primarily aimed at informing guests and To build awareness, principle responsible for their own gaming conduct and making them aware of safe and responsible gaming practices. it is important that should not play longer or more frequently than is good for This includes sharing information on the subject both online them or more than their financial situation allows. and offline. There are a variety of ways to enter into a dialogue guests agree to visit To make players aware of their gaming conduct, with guests. restrictions or entry Holland Casino provides them with all the information The frequency of visits may prompt an awareness interview. bans voluntarily. it has available to help them assess their own behaviour. In 2017, Holland Casino tightened the policy on this front in consultation with the advisory group. If a guest makes an Our employees play a vital role in the execution of this policy. average of 12 (or more) visits a month to Holland Casino over They are our eyes and ears on the ground. Employees receive a three-month period, this prompts an awareness interview. extensive training on responsible gaming, which is aimed at A qualified employee of the Security & Responsible Gaming providing them with insight into the problems associated with department has a conversation with the guest and discusses gambling addiction. They are trained in early recognition of what constitutes responsible gaming and the risks associated potential problem behaviour and learn to make an active with gaming. The number of awareness interviews increased contribution to the Responsible Gaming Policy by using their to 1,710 in 2018 (2017: 1,043 interviews) due to the tightened communication skills. They also learn to recognise and assess policy. changes in guests’ behaviour. If necessary, they can send an internal signal to their manager or the Security & Responsible Since young adults in the age group 18 through 23 are consid- Gaming department via the central registration system. ered to have a higher risk of addiction, we have a stricter policy for this age group. For instance, every young adult receives a In addition to the employees, the management also plays a flyer with information on their fourth visit, to make them key role in the Responsible Gaming Policy. They have already aware of the frequency of their visits and the risks of gaming. followed extensive (online) training courses. In 2018, we If the frequency of a young adult’s visits increases over a developed a new training course for staff and casino managers, three-month period, we conduct an awareness interview, and this course will be given together with a behavioural the so-called young adult interview. In 2018, we conducted expert in 2019. 2,197 interviews with young adults (2017: 2,521). Holland Casino’s Responsible Gaming Policy is built on 3. Monitoring four pillars: We assess the frequency of a guest’s visits and gaming 1. Identification and registration behaviour six and 18 months after the initial awareness Holland Casino’s guests are required to identify themselves interview – a qualitative analysis of any signals and incidents upon entry and their visit is recorded in the central visitor reported and recorded in the systems of the Security & registration system. Responsible Gaming department. Depending on the outcome 41

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    REPORT OF THE EXECUTIVE BOARD Anti-money laundering: not just what, but also why of the analysis, the guest may or may not qualify for a monitoring interview. During a monitoring interview, we once again emphasise the guest’s own responsibility when it comes A casino can be sensitive to money laundering, for instance because cash can be exchanged for to safe and responsible gaming and regulating their (gaming) chips and these can then be exchanged for cash again: the so-called exchange transactions. behaviour. Holland Casino has translated laws and regulations relating to the prevention of money In 2018, we conducted 101 monitoring interviews, an increase laundering and financing of terrorism into its Anti-money laundering policy. In 2018, the fourth compared to 2017 (61 interviews). EU anti-money laundering directive was implemented in the Dutch Prevention of money laund- ering and financing of terrorism Act (Wwft). A number of these legislative changes have a direct When young adults are involved, we take extra precautions via impact on Holland Casino, such as the criteria used for reporting unusual transactions. In 2018, so-called prevention interviews. In 2018, we conducted a total we worked on translating the directive into a clear and efficient way of working for our staff. of 2,386 prevention interviews, a slight increase compared to 2017 (2,306). Fleur Kuijper, advisor Wwft & Integrity: “At Holland Casino, we devote attention not only to what we do but also why we’re doing it. If we go beyond simply executing the directive to also living it, 4. Intervention this will help us make the right choices. What this means is that our guests can continue to In the more probing monitoring interview, we confront the enjoy their gaming, while we will be able to spot visitors who break laws and regulations earlier guest with the findings of the monitoring phase and discuss and our colleagues can use their professional skills and get more fulfilment from their work.” any measures that may need to be taken to moderate their gaming behaviour, such as visit restrictions or an admission The Dutch Remote Gaming Act is also subject to the Prevention of money laundering and ban. In the context of awareness, it is important that guests financing of terrorism Act. In 2018, Holland Casino therefore worked hard to make its voluntarily agree to a visit restriction or admission ban. Anti-money laundering policy suitable for an online gaming environment. If necessary, when a guest is no longer considered capable of accepting responsibility, Holland Casino will impose a restric- tive measure. The risk of visit restrictions or admission bans is that they may be ineffective if the guest can continue to play anonymously at arcades or in illegal facilities. This issue will be resolved with the arrival of the Remote Gaming Act (Kansspelen op Afstand – Koa). Under the new legislation, identity checks will become compulsory for both online gaming (via DigiD – digital identification) and in physical locations (passport or driving licence). Guests at Holland Casino are already obliged to show their passport or driving licence upon entry. The same will also apply to gaming facilities such as arcades and online gaming. In addition, the Remote Gaming Act will make it compulsory for all providers, both physical and online, to register visit restrictions in the 42

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    REPORT OF THE EXECUTIVE BOARD central registration system for gaming exclusions (Centraal register uitsluiting kansspelen – CRUKS). This will help us as a In January 2018, we introduced a new incident system, iTrack, which is user-friendly and can be used both online and offline. Guests must be sector to stop problem players shopping between providers. This new system has automated a large number of actions, able to trust that When a player returns after a restrictive measure, a member of the Security & Responsible Gaming staff will have an aftercare which has made the execution of the policy more objective, which in turn resulted in an increase in the number of Holland Casino’s interview with them. In 2018, we conducted 10,777 aftercare Responsible Gaming Policy reports and interviews in 2018. games are fair interviews (2017: 10,485). The tightening of the policy on the frequency of visits and reliable. The maximum duration of a restrictive measure is six months, combined with the extended opening hours in Rotterdam also in line with the Remote Gaming Act (Koa). After this period, we contributed to the increase in the number of interviews. make contact with players once again via an aftercare inter- view. This enables us to prevent them from gaming in the Hospitality interview illegal gaming circuit for a longer period of time. In addition to The hospitality interview is an additional opportunity to a voluntary admission ban, Holland Casino can also impose a assess whether guests are playing responsibly. A hospitality (long-term) admission ban. interview is a spontaneous conversation between a shift leader and a guest, which is not necessarily related to the Responsible In recent years, Holland Casino has increasingly chosen to refer Gaming Policy. players with a visit restriction or admission ban to HANDS. This is an independent organisation specialising in addiction Responsible Gaming Policy online care by telephone. These days, HANDS initiates the contact Holland Casino also wants to provide games of chance online with the guest, with the guest’s permission, to start the and preparations for this are in full swing. We are adapting our support process, rather than the other way around. Responsible Gaming Policy for an online gaming environment, As far as employees are concerned, they are not allowed to in consultation with the advisory group. participate in games of chance during and for six months after the end of their employment at Holland Casino. Fair and reliable gaming Guests must be able to trust that Holland Casino’s games are fair and reliable. Holland Casino can guarantee its guests fair EXECUTION PBK IN FIGURES gaming because it has reliable and qualified employees, 2018 2017 gaming equipment that meets objective technical standards Number of interviews 23.950 21.324 and works according to pre-determined payment percentages. Admission restrictions 4.546 4.888 Compulsory admission restrictions 330 432 Holland Casino has thorough recruitment and hiring proce- Admission bans 5.977 5.886 dures for new employees: every new employee has to apply for Compulsory admission bans 245 336 and submit an official certificate of good conduct (Verklaring Omtrent het Gedrag – VOG). We also continuously train and 43

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    REPORT OF THE EXECUTIVE BOARD educate our employees so they can provide games in a safe and HOLLAND CASINO’S REPORTS TO THE FIU (INCLUDING FOLLOW-UP REPORTS) responsible way. Reported on the basis of Reported on the basis of Total objective indicators subjective indicators The NMI, an independent organisation specialised in testing, 2018 1.853 1.890 3.743 certification and training in the field of measurement systems 2017 1.386 1.741 3.127 and games of chance, conducts checks on our tables twice a 2016 1.199 1.475 2.674 year. This includes tests to safeguard the random selection 2015 894 1.094 1.988 process in our gaming systems. The Dutch Gaming Commis- 2014 501 903 1.404 sion monitors the reliability of our slot machines. We report unusual transactions to the Dutch Financial Guaranteeing a safe gaming environment Intelligence Unit (FIU) and transfers of money are carefully We consider it our duty to reduce the chances of fraud and checked before they are approved or rejected. If Holland Casino criminal acts to the absolute minimum. We do this by has any doubts about the origins of money being used to play, complying conscientiously with the Dutch Financial Super- we conduct a further investigation and we may impose an vision Act (Wft), the Prevention of money laundering and the admission ban on the guest in question. The indicators for financing of terrorism Act (Wwft) and the Sanctions Act 1977. unusual transaction reporting have been tightened as of 1 August 2018 in line with the international guidelines of In addition to video monitoring, Holland Casino now also uses the Financial Action Task Force (FATF). sound recordings at the American Roulette tables so we can listen to those recordings in the event of incidents or claim The number of objective transactions reported in 2018 related disputes. And since 2018, the Security & Responsible Gaming to 635 deposits (2017: 503), 434 transfers (2017: 442), 777 cash department also has an indirect connection with police transactions and credit card payments of EUR 10,000 or more, incident reporting rooms, which makes it possible to watch live and foreign currency transactions (2017: 437) and seven other and take adequate measures in the event of serious incidents. reports (2017: 4). The increase in the number of unusual transaction reports was due to the tightening of both the Anti-money laundering policy indicators for reporting unusual transactions and the tightened The Dutch Gaming Commission is responsible for the super- policy of the Dutch Gaming Commission on reports to the FIU. vision of Holland Casino and its anti-money laundering policy. Holland Casino’s anti-money laundering policy is based on NUMBER OF ADMISSION BANS * three main pillars: risk classification and client screening, (after refusal to cooperate in a client investigation) the monitoring of business relations and the reporting of 2018 63 unusual transactions (Dutch Disclosure of Unusual Trans- 2017 57 actions Act – MOT). 2016 50 2015 41 2014 21 * This pertains to admission bans related to potential money-laundering risks. 44

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    2018 HIGHLIGHTS / VENLO 2 2018 HIGHLIGHTS JORDY VREMAN: ‘I WOULD LOVE TO GET THE KEYS TOMORROW!’ Jordy Vreman, facilities manager in Venlo, has been involved in the process of realising a new casino in Venlo since 2015. ‘When I first learned about the plans for Venlo 2, as we call it, I was sold immediately. Wow, a completely new building for our casino, that is so cool, was my first thought. Since then, I have been involved in drawing up the requirements and wishes for the new building, I have been part of the talks on the design and I attend every construction meeting. Because you can come up with a lot of great plans, but if they are not feasible or don’t meet our requirements, they are no use to anyone. ‘The casino will be trendsetting, modern, with a striking LED façade. There is a lot of work still to be done, but that’s okay. This process gives me so much energy. And the moment we broke ground was very special. Now it really is going to happen, I thought. I would love to get the keys tomorrow!’ 45

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    2018 HIGHLIGHTS / VENLO 2 2018 HIGHLIGHTS NEW LANDMARKS: SUSTAINABLE, VISIBLE AND ACCESSIBLE Breaking ground in Venlo was the official the casino’s residual warmth can be used start of the construction of the new casino, for other buildings. Holland Casino will which will open its doors in 2020. But remain open in its current location on the 16 OCT that’s not all. Holland Casino is quite Jaarbeurs site until the opening of the 2018 literally building its future. new building. With a 25-metre high LED façade that can In December, Holland Casino opened its change to any colour, nobody will be able to temporary casino in Groningen, at the miss the new Holland Casino on Flevolaan Sontplein. Following the fire at the in Venlo once construction is complete. Kattendiep location on 27 August 2017, The design was even nominated for a we wanted to open our doors to our guests World Architecture Festival Award. again as soon as possible. Holland Casino and the local authorities are still in talks Guests visiting Holland Casino Venlo are about a new permanent location. not just from the Netherlands, as they also come from places such as Belgium and Germany. The location at the side of the motorway and the parking facilities make the new Holland Casino an even better The design was alternative for a night out for both national nominated for and international guests. a WAF award. The construction of the casino is in line with Holland Casino’s innovation and renewal strategy. Holland Casino is also set to add a new casino in Utrecht in the future, on Winthontlaan. The features of the building will include a thermal storage system: 46

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    REPORT OF THE EXECUTIVE BOARD OUR PEOPLE To offer our guests the highest possible level of successes and in the translation of Holland Casino’s vision to hospitality, we need skilled and engaged staff. Our the work floor. We initially follow up on the results at local employees ensure that we can stand out, now and in level. For instance, various casinos have now set up focus the future. This is why Holland Casino and Gaming & groups to initiate a dialogue with the management. Casino Services invest in a safe working environment and offers its employees career development opportu- EMPLOYEES nities. Our core values – friendly, surprising, engaged 2018 2017 and reliable – are the guiding principles in this drive. Employees casinos 3,653 3,475 Employees head office 246 224 Culture and leadership are spearheads in our long-term Employees GCS 50 0 strategic plan. In that context, in the first half of 2018 we Total employees (headcount) 3,949 3,699 organised three shift leader days and a total of 47 employee Culture and days to engage people more effectively in our HC2020 strategy and so we can execute the strategy more Employees Table games 1,454 1,409 Employees Slot machines 336 295 leadership are effectively together. Employees Services 651 630 spearheads of Due to the success of this initiative, we are also planning to Employees Food & Beverage Employees Other 764 694 700 665 the strategic organise management and employee days in 2019. And we Employees GCS 50 0 will also invite the shift leaders to the management days, to long-term plan. engage an even broader segment of the management in the Total employees (headcount) 3,949 3,699 course we have chosen for our company. During these days, Male employees full time 890 869 attendees talk to each other about Holland Casino’s current Male employees part time 1,271 1,136 opportunities and risks, plus everyone is updated on the Total male employees 2,161 2,005 various components of the strategic plan. Female employees full time 139 153 Female employees part time 1,649 1,541 Flow Total female employees 1,788 1,694 In 2018, we also started using the employee survey Flow. With support from Blauw Research, we conduct a continuous Total employees (in fte) 2,920 2,708 theme-based survey to ensure we have insight into changes in Average age (in years) 45 44 employee satisfaction. The first results revealed that there is room for improvement in the workload employees experience, in working on the basis of a shared ambition, in celebrating 47

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    REPORT OF THE EXECUTIVE BOARD Holland Casino is proud of the employees at our Amsterdam In addition to sector-specific training courses in the field of West-Sloterdijk and Groningen casinos, who showed remark- table games, slot machines and services, Holland Casino also able flexibility in the past period by temporarily working provides generic training modules. at casinos across the country. As of December 2018, the Groningen employees are back working in Groningen, Training courses and education in the temporary casino. In the course of their career at Holland Casino, employees take various specialist training courses. In 2018, we once again New employees renewed a number of specialist training courses, including the We want to retain our prominent position in the casino course in table games, plus we introduced a new F&B training market. This is why in 2018 we devoted considerable attention course. The training courses are blended learning processes, to positioning Holland Casino as an employer brand. This which incorporate both online and offline learning. We will included the development and use of various online and offline eventually renew all existing specialist courses. In addition, materials for labour market communications. When we recruit as part of the new collective labour agreement, employees new talents, we do not simply assess whether people have the have access to a personal education budget of EUR 500 per qualities we are looking for; we also assess whether they fit year, which they can use or save up at their own discretion. into our organisational culture. Holland Casino’s learning portal gives employees access to In 2018, we also developed a new HR app to help new more than 1,000 training courses, including free courses. employees navigate the organisation. In 2018, around 300 employees made use of their career budget or the Holland Casino study scheme. Growth and development Holland Casino also invested heavily in employee training at Holland Casino and Gaming & Casino Services invest in their subsidiary Gaming & Casino Services B.V.. For instance, various people to make sure they are the best in their field now and employees followed a number of general training courses in remain so in the future. We ensure that our people have room the fields of electric equipment inspector, fork lift truck driver to develop and provide a wide range of e-learning modules, and hydraulic lift operator, emergency and first-aid services training courses, education and development programmes. and client focus. To remain up-to-date on technological developments in the field of slot machines, the field and repair employees followed training courses at various companies such as Novomatic, IGT, Interblock, Aristocrat and Bally. Whether staff work at one In 2018, we also trained a new internal audit team for ISO 9001:2015, ISO27001 and for the General Data Protection of the casinos or at the head Regulation (GDPR). office, we want everyone Hospitality Cordiality, social skills and service-focus all play a crucial role to feel safe. in realising the highest possible level of hospitality. We use the 48

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    REPORT OF THE EXECUTIVE BOARD HEP (Hoffelijkheid, Emotie en Pro-activiteit) theory of cordi- of Statistics (CBS) show that absenteeism in the Netherlands ality, emotion and pro-activeness for this purpose. All casinos increased in 2018. We saw that trend at Holland Casino, too, have hospitality coaches to train new employees and keep as absenteeism increased to 4.8% in 2018, from 3.7% in 2017, the subject and the theory acquired alive and front of mind. in a generally downward trend. This means we did not meet All hospitality coaches meet twice a year to exchange experi- our target of 3.5% in 2018, partly on the back of the sustained ences. In 2018, we launched a programme of mystery visits to flu epidemic in the early part of the year. test the hospitality level at the various casinos. The mystery As in previous years, we supported various local BRAVO visits are made by employees from other casinos and they initiatives in 2018. BRAVO, which helps people stay fit and share their experiences afterwards. healthy, is short for more exercise (Beweging), no smoking (Roken), moderate alcohol intake (Alcohol), healthy diet Management Development programme (Voeding) and sufficient relaxation (Ontspanning). Holland Casino considers development of leadership skills Holland Casino organised various national sports events that within the organisation extremely important and offers its employees could participate in. employees the opportunity to continue to develop their talents and careers. In early 2018, we launched the third edition of the Safe and responsible for our guests Management Development (MD) programme, this time in Responsible Gaming Policy combination with talent development. Every single participant Our employees play a crucial part in the execution of in the third edition has since been promoted. Holland Casino’s Responsible Gaming Policy (PBK). The Responsible Gaming training course provides insight into the Same job, new venture problems around gambling addiction and provides employees More than 150 employees participated in the ‘same job, new with training in the early recognition of addictive or problem- venture’ programme in 2018. This is a programme that gives atic behaviour. The basic training course is compulsory for all employees the opportunity to work in their own job at a employees. In addition to the basic course, the managers and different casino for a few days. The first exchanges were employees at our Security & Responsible Gaming department between the casinos in Nijmegen, Venlo, Eindhoven and also take supplementary training courses. You will find more Valkenburg, at their own initiative. The project gives our people information about our Responsible Gaming Policy in the the opportunity to expand their horizons and at the same time chapter ‘Our guests’. encourages the exchange of know-how between the casinos. The casinos in Enschede, Amsterdam, Zandvoort and Utrecht Anti-money laundering policy have also joined the initiative. Pursuant to the Prevention of money laundering and financing of terrorism Act (Wwft), but also driven by our social responsi- Healthy and vital employees bility, Holland Casino provides employees with anti-money At Holland Casino our goal is healthy and vital employees who laundering policy training. Employees in specific positions also enjoy coming to work. Figures from the Dutch Central Bureau follow additional training courses. 49

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    REPORT OF THE EXECUTIVE BOARD Safety and integrity To provide the highest possible level of hospitality, we need EMPLOYEES Holland Casino attaches a great deal of importance to a safe sufficiently experienced employees with professional (people) 2018 2017 and pleasant working environment for its employees. Whether know-how, a passion for gaming and engagement with our Employees cao 3,835 3,643 employees work in one of our casinos or at our head office, we guests. This is why permanent contracts are the norm at Employees HAY 64 56 want everyone to feel safe. The Security & Responsible Gaming Holland Casino. However, Holland Casino does benefit from a Employees GCS 50 0 department plays an important role in this via permanent certain level of flexibility and we have now laid down more Total employees 3,949 3,699 camera supervision and the presence of security staff on the specific agreements in that context. casino floor. Career development Confidential advisers, Integrity hotline and Complaints Holland Casino encourages its employees to achieve their full committees potential, so they are and remain optimally deployable now Holland Casino has qualified confidential advisers at all its and in the future. This is why in January 2019, Holland Casino casinos and the head office to provide employees with advice launched a centralised career centre to help and stimulate and guidance in the event of inappropriate behaviour and employees. This is a central department, where every employee integrity issues. The confidential advisers are known at the can get advice on and an explanation of the career develop- casinos and information about integrity issues and inappro- ment schemes and opportunities both within and outside priate behaviour is available on our intranet and in the form Holland Casino. The career centre also provides extra support of a brochure at all our casinos. and coaching. We also have an Integrity hotline, a complaints committee for The collective labour agreement also includes a number of inappropriate behaviour and a committee for the reporting tools employees can use, such as the career development of integrity issues (Commissie Melden Integriteitskwesties). budget, the generation pact, a positive demotion scheme and In 2018, the committees received and dealt with one report. sustainable employment hours. It also allows for a combina- The Security & Responsible Gaming department investigated tion of the generation pact and part-time pension. A new a total of 51 integrity issues, a slight decline compared to component in the career departure scheme gives employees 2017 (54). the opportunity, under specific conditions, to make an external career move after guidance from the career centre. Labour terms and conditions Collective labour agreement The pension scheme is also part of the collective labour In June of 2017, Holland Casino negotiated an agreement with agreement. Holland Casino transferred its pension scheme to the trade unions on a five-year collective labour agreement, STAP Algemeen Pensioenfonds in 2017, in consultation with which runs from January 2016 through December 2020. In the executive of the Holland Casino pension fund. 2018, we settled the last few issues related to flexible/fixed contracts and sustainable employability. 50

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